Part 84

SAN JOSÉ OPIOID RESPONSE FUND*

Sections:

There is hereby created and established the "San José Opioid Response Fund." (Ord. 31039.)

Interest that accrues from monies in the San José Power Fund will be credited to this fund. (Ord. 30956.)

• A. Monies in the San José Power Fund will only be expended for costs of operating San José Power, including but not limited to, energy procurement; on-going capital improvements and maintenance of the electric utility system in the utility service area; payment of required debt service; staffing and administration costs; purchase of supplies, materials, and equipment attributable to or necessary for the operation, improvement, and maintenance of the electric utility system in the

• B. utility service area; and transfers to the general fund to compensate the City as permitted by applicable law.

• C. Monies in the San José Power Fund will be appropriated, and appropriate reserves within the San José Power Fund will be established and maintained, as determined by the City Council on an annual basis through the budget process.

• (Ord. 30956.)

The source of monies budgeted and accounted for in the San José Opioid Response Fund shall be from:

• A. Distributions by the State of California in the California Abatement Accounts Fund and the California Subdivision Fund pursuant to National Opioid Settlement agreements with, and judgments and orders against, manufacturers, distributors, and other entities responsible for aiding the opioid epidemic;

• B. The Mallinckrodt Bankruptcy which is distributed by the State of California in the California Abatement Accounts Fund pursuant to the California Mallinckrodt Statewide Abatement Agreement; and

• C. Distributions pursuant to opioid settlement agreements and bankruptcy agreements not otherwise specified in this Section.

(Ord. 31039.)

A. Monies received from the National Opioid Settlement and deposited in the California

*Editor’s note— The provisions of this part shall take effect retroactive to July 1, 2023.

T4:309

2025-Supplement 3

SAN JOSÉ CODE

§ 4.80.4910

Abatement Accounts Fund and allocated to San José must be spent on prevention, intervention, harm reduction, treatment, and recovery services in the community. Up to 10% of the funds received from the Abatement Account may be used for administrative costs. Allowable expenditures are set forth in Exhibit E of the National Opioid Settlement Agreements.

• B. Monies received from the National Opioid Settlement and deposited in the California Subdivision Fund and allocated to San José may be used to fund future opioid remediation projects. They may also be used for past opioidrelated expenses, including legal costs, and on expenses that do not qualify as opioid remediation. Money received from the Subdivision Fund may also be used for administrative costs. Allowable expenditures are set forth in Exhibit E of the National Opioid Settlement Agreements.

• C. Monies received from the California Mallinckrodt Statewide Abatement Agreement may be used for future opioid remediation activities focused on prevention, intervention, harm reduction, treatment, and recovery services in California communities, as well as administrative expenses. Allowable expenditures are listed in Exhibit 4 of the Mallinckrodt Bankruptcy Plan (otherwise known as Exhibit E of the National Opioid Settlement Agreements).

• D. Monies received from opioid settlement agreements and bankruptcy agreements not otherwise specified in this Section must be spent in accordance with the requirements of the applicable settlement or bankruptcy agreement, including any requirements related to administrative costs and allowable expenditures.

• (Ord. 31039.)

Interest which accrues from monies in the San José Opioid Response Fund shall be credited to this Fund.

(Ord. 31039.)